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What types of insurance do I need for my security guard business?

 

Security guard businesses typically need general liability insurance for third-party injuries or property damage, professional liability for errors or negligence in service, and workers’ compensation for employee injuries. Commercial auto insurance may be needed if vehicles are used, and assault and battery coverage is often critical due to the nature of the work.

What does general liability insurance cover for security guard businesses?

 

General liability covers third-party bodily injuries (e.g., a bystander injured during an incident) and property damage caused by your operations. It includes legal defense costs for related lawsuits but does not cover employee injuries or professional errors.

Is workers’ compensation insurance required for security guards?

 

Yes, most states require workers’ compensation insurance for employees, including security guards, to cover workplace injuries (e.g., from physical altercations). Non-compliance can result in fines, lawsuits, or business closure, so check state-specific regulations.

What is a certificate of insurance, and

why is it needed?

 

A certificate of insurance proves your business has active coverage, detailing policy types and limits. Clients, property owners, or event organizers often require it to verify you’re insured against risks. Your insurer can provide this document.

Do I need cyber insurance for my

security guard business?

 

If your business stores client data, uses digital scheduling, or processes payments online, cyber insurance is recommended to cover losses from data breaches, hacking, or ransomware, which are growing risks in the security industry.

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How much does insurance for a security guard business cost?

 

Premiums vary, with general liability costing $500–$2,000 annually for small businesses, while professional liability and workers’ comp can add $1,000–$5,000 each, depending on the number of guards, services (e.g., armed vs. unarmed), and location. Total costs often range from $2,000–$10,000 per year.

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What is professional liability insurance,

and do I need it?

 

Professional liability (errors and omissions) insurance covers claims of negligence, failure to perform duties, or errors in service (e.g., a guard failing to prevent a theft). It’s essential for security businesses, especially for high-risk contracts, to protect against costly lawsuits.

Does my insurance cover incidents involving armed security guards?

 

Standard policies may exclude incidents involving firearms. You’ll need specific assault and battery coverage or an armed security endorsement to cover injuries or damages caused by armed guards, which is critical for armed security operations.

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Does my insurance cover vehicles used

for security patrols?

 

General liability does not cover vehicles. You need commercial auto insurance to cover accidents, injuries, or property damage involving company vehicles used for patrols or transport, ensuring protection for drivers and the business.

What happens if I don’t have insurance for my security guard business?

 

Without insurance, you’re personally liable for lawsuits, employee injuries, or property damage, which can lead to significant financial losses. You may also lose contracts, as most clients require proof of insurance, and face fines for non-compliance with state regulations.​